A resistance zone in the cryptocurrency market refers to a price range where an asset, such as a coin or token, faces selling pressure that prevents it from rising further. Traders identify these zones using historical price data, technical indicators, and chart patterns. When the price of a coin approaches a resistance zone, it often encounters increased selling activity, making it difficult for the price to break through this level. If the price does manage to break through, it can signal a potential bullish trend.
A support zone in the cryptocurrency market is a price range where an asset tends to find buying interest, preventing it from falling further. Traders identify these zones using historical price data, technical indicators, and chart patterns. When the price of a coin approaches a support zone, it often encounters increased buying activity, making it difficult for the price to drop below this level. If the price does manage to break through the support zone, it can signal a potential bearish trend.